Investing in an IPO is one of the most exciting and potentially lucrative investment opportunities available to investors. However, it’s essential to understand the risks involved and never risk more than you can afford to lose. This guide equips both new and experienced investors with the insights they need to navigate IPOs effectively on eToro. How to Invest in IPOs on eToro.
An IPO is the process of opening a private company’s shares for public trading, allowing it to raise funds and boost its profile as a publicly traded firm. Historically, IPOs were only available to the privileged customers of leading brokerage firms, but new technologies and marketplaces have now changed this. Now regular investors can access IPOs directly through apps like Freedom Finance or TD Ameritrade.
Preparing for an eToro IPO
Popular social trading and investing platform eToro has filed confidential IPO documents with the US Securities and Exchange Commission (SEC). The company plans to list on either the NYSE or the more tech-focused NASDAQ, with a potential $5 billion valuation. Customers should monitor the S-1 filing closely once it’s made public for any mention of a directed share program, whereby the company may set aside some or all of its IPO shares for eToro shareholders. If this is the case, customers can expect to receive an invitation to participate from their eToro brokerage account once they are able to express interest in the IPO and commit funds. Then, once the IPO opens for trading, they can watch their investment performance and make decisions accordingly.